"Further to our earlier communication dated December 24, 2024, we wish to inform you that the Letter of Intent (LoI) entered into by our wholly owned subsidiary, Techlabs Semiconductor Pvt. Ltd., for the proposed acquisition of the Sivaltech Group (comprising entities based in the USA and India), has been
cancelled.
Techlabs Semiconductor Pvt. Ltd. had been in advanced discussions with Sivaltech Group for the acquisition of equity, with a view to making Sivaltech group our Subsidiaries. However, during the course of final negotiations, the promoters of Sivaltech group proposed certain transactional terms that materially deviated from those outlined in the mutually agreed LoI.
After due diligence and careful evaluation, it was decided to discontinue the acquisition process.
Techlabs Semiconductor Pvt. Ltd. has since redirected its focus and is actively exploring other promising strategic opportunities. Any material developments in this regard will be duly disclosed to stakeholders in accordance with applicable regulatory requirements."
Company would obviously not say it frankly but after the cancellation of preferential allotment due to backing off by investors, they would be short of funds for aquisition which may have led to its cancellation.